Public Accounts Committee report on PFI

The Commons Public Accounts Committee (PAC) has warned today that, in too many cases, investors have made "eye-wateringly high" profits while taxpayers are trapped in expensive and inflexible contracts.

The Committee Chair said: "The current model of PFI is unsustainable. Time and again my Committee has reported on problems with PFI, including the costly contracting process and the prospect of little risk being transferred but high returns being enjoyed by  investors. 30 year contracts are inflexible and don’t allow managers to alter priorities or change services that have become outdated. We have even seen evidence of excess profits being priced into projects from the start."

All of this could have been lifted from a UNISON briefing 15 years ago. Time for the UK and Scottish Governments to think again.